Correlation Between ZIJIN MINH and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both ZIJIN MINH and Agnico Eagle at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ZIJIN MINH and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZIJIN MINH UNSPADR20 and Agnico Eagle Mines, you can compare the effects of market volatilities on ZIJIN MINH and Agnico Eagle and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ZIJIN MINH with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZIJIN MINH and Agnico Eagle.
Diversification Opportunities for ZIJIN MINH and Agnico Eagle
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZIJIN and Agnico is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ZIJIN MINH UNSPADR20 and Agnico Eagle Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agnico Eagle Mines and ZIJIN MINH is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ZIJIN MINH UNSPADR20 are associated (or correlated) with Agnico Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agnico Eagle Mines has no effect on the direction of ZIJIN MINH i.e., ZIJIN MINH and Agnico Eagle go up and down completely randomly.
Pair Corralation between ZIJIN MINH and Agnico Eagle
Assuming the 90 days trading horizon ZIJIN MINH is expected to generate 1.11 times less return on investment than Agnico Eagle. In addition to that, ZIJIN MINH is 1.41 times more volatile than Agnico Eagle Mines. It trades about 0.06 of its total potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.09 per unit of volatility. If you would invest 4,506 in Agnico Eagle Mines on September 4, 2024 and sell it today you would earn a total of 3,474 from holding Agnico Eagle Mines or generate 77.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
ZIJIN MINH UNSPADR20 vs. Agnico Eagle Mines
Performance |
| Timeline |
| ZIJIN MINH UNSPADR20 |
| Agnico Eagle Mines |
ZIJIN MINH and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZIJIN MINH and Agnico Eagle
The main advantage of trading using opposite ZIJIN MINH and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZIJIN MINH position performs unexpectedly, Agnico Eagle can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Agnico Eagle will offset losses from the drop in Agnico Eagle's long position.| ZIJIN MINH vs. Barrick Gold | ZIJIN MINH vs. Superior Plus Corp | ZIJIN MINH vs. NMI Holdings | ZIJIN MINH vs. Origin Agritech |
| Agnico Eagle vs. PENN NATL GAMING | Agnico Eagle vs. TSOGO SUN GAMING | Agnico Eagle vs. MITSUBISHI STEEL MFG | Agnico Eagle vs. GigaMedia |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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